Senior Citizens: 8.3% FD Rate — Are You Claiming It?

Senior citizens can now earn up to 8.3% on fixed deposits at select banks. Small finance banks are offering the highest rates, beating most large banks by nearly 1%. If you're a retiree, it's worth comparing before renewing your FD.

Here's what happened: Small finance banks like Unity SFB and Shivalik SFB are offering up to 8.3% FD rates exclusively for senior citizens.. Large banks like SBI, HDFC Bank, ICICI Bank, PNB, and Axis Bank offer senior citizen FD rates in the 7.0%–7.75% range depending on tenure.. Senior citizens typically receive an extra 0.25%–0.50% over regular FD rates across most banks — a standing RBI-encouraged benefit..

What you should do: Compare FD rates across small finance banks and large banks on DICGC-insured platforms before renewing any existing deposit.. Check whether your deposit stays within the ₹5 lakh DICGC insurance limit per bank, especially when choosing smaller SFBs.. Ask your bank specifically for the 'senior citizen rate card' — many branches default to the standard rate unless you ask..

Splitting ₹10 lakh across two small finance banks keeps you fully insured (₹5 lakh each) while capturing the highest available FD rates.